Eagle Star is offering a personal pension exclusively for IFA clients with flexible opt ions and charging structures aimed at undercutting the stakeholder market.
The pension plan has no initial charge, no monthly policy fee and an annual management charge limited to 1 per cent of the fund value.
The annual charge red uces to 0.8 per cent when the pension fund builds up to more than £50,000.
Eagle Star says its commi ssion structure is very flex ible and both feeand com mission-based IFAs will be able to use the plan.
Investors can choose from 36 funds managed by Thread needle or from funds managed by 12 external invest ment managers, including Schro ders, Gartmore and Perpetual. Up to 12 free switches between funds can be made each year.
Minimum investment for regular contributions is £75 a month or £900 annually. Inv estors can also make single contributions subject to a minimum of £5,000.
The allocation rate is 100 per cent, with commission at 30 per cent of Lautro rates. IFAs can earn more commission by reducing the allocation rate.
For fee-based advisers, the annual management charge falls to 0.75 per cent or 0.55 per cent when the fund exc eeds £50,000.
Eagle Star Life spokesman Tony Reardon says: “We have developed this policy with a commission structure so flexible that IFAs will be able to continue providing the most appropriate advice.
“It offers a wide choice of investments and options to cater for client budgets and attitude to risk, yet can be finely tuned to their precise specification, providing a very personal pension solution.”